Gov't to spend 100 bln won on overseas marketing in H1 to buoy exports

By Lee Joon-seung
SEOUL, Jan. 1 (Yonhap) -- The government said Thursday it will spend 100 billion
won (US$76.3 million) on overseas marketing support efforts until June to help
boost South Korean exports.
The amount represents more than 70 percent of the 140 billion won in state funds
earmarked for export marketing support in 2009 and reflects the need to help
companies attract more buyers in the face of the current global economic slump,
the Ministry of Knowledge Economy said.
Most of the money to be used in the first half will come from the ministry and
the state-run Korea Trade-Investment Promotion Agency (KOTRA), with the Small and
Medium Business Administration and regional administrations providing additional
support.
Seoul said that it wants to ship out $450 billion worth of goods this year, up
from around $420 billion in 2008, with the country's trade surplus to hit $10
billion. The target reflects the best possible outcome, with most think tanks and
government policymakers predicting zero or negative export growth in the new
year.
"Studies have shown that 70-80 percent of all transactions are arranged during
trade fairs, gatherings of importers and road shows that help connect sellers and
prospective buyers," a ministry official said.
He said Seoul plans to support participation of local companies at foreign trade
fairs and host large exhibitions that bring in more than 1,000 buyers.
The ministry, meanwhile, said it is planning to develop "customized" support
plans that can assist local companies in expanding their market share in key
overseas markets.
It said local companies must be geared to take full advantage of economic policy
initiatives that will be implemented in the United States and the European Union.

Efforts must be made to use the appreciation of the Chinese yuan to sell more
products to the rapidly developing economy and use the weak Korean won to reduce
South Korea's chronic trade deficit with Japan that surpassed $30 billion last
year, the ministry said.
yonngong@yna.co.kr
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